From Bad Trade To Profitable!

THE WEEK

This week’s reaction to a major economic announcement did not cause a violent downturn by the trading herd we had been seeing for months.  Here is the reaction at 8:30am Friday to May’s Job Report.  

For months and months there was a down reaction to the report.  This is one of the major factors the FOMC looks at when making the decision on possible future interest rates hikes.  Ideally, the ratio of open positions vs job seekers is 1:1.  For the past year and a half, the ratio has been in the 2:1 range meaning there are a lot more job openings than people seeking employment.  Companies have struggled to fill positions having to pay higher wages and bonuses to get and keep qualified employees.  These additional costs were passed along making our purchases for goods and services priced higher.  This added to the inflation strain we all have felt.  

The other good news is it appears the Democrats and Republicans have finally reached an accord on raising the debt ceiling.  I am in the midst of reading the proposal with all the concessions each side has agreed to.  It is a very long and boring read.

LOOKING AHEAD

My personal opinion is we are going to see the Market price/action go up.  Abet, the ride won’t be really smooth as there is still the unknown of how the FMOC will handle the latest economic data.

HOW AM I DOING?

I had a great week all because of one bad trade that I managed to massage to a huge profit.  The rest of my trades were OK but nothing to brag about.  The trade that boosted my trading account balance up was an Iron Condor on ENPH.  On an Iron Condor you want the price to stay flat.  ENPH started shooting up.  I bought back the short CALL and left the long CALL to work it’s magic as the price went up.  My gains trading in our DATA class for 6 weeks is now at 73.05%.  Yeah!

The subject of next Thursday’s webinar Deep Dive

How to Build a Great Watchlist of Tickers for Possible Trades

I always remember one of the first Investool workshops I attended.  One of the students asked the instructor just to give them the list of Tickers he was watching.  His reply struct a chord with me.  

“If I did that I would be doing you a disservice.  You would never learn how to build your own list and would have to always rely on someone else to tell you what to trade.”